Mcchip Resources (MCS) AI Stock Analysis

• Market Cap: C$7.99M
• Dividend Yield: 3.32%
• Average Volume (3M): 3.73K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 0.31
• Revenue Growth: N/A
• EPS Growth: 693.68%
• Country: CA
• Employees: 4
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Oil & Gas Energy
• EPS (TTM): N/A
• Shares Outstanding: 5,710,096
• 10 Day Avg. Volume: 2,078
• 30 Day Avg. Volume: 3,731
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$1.50
• Price Target Upside: 7.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: C$1.50 ▲(7.14% Upside)

Mcchip Resources' strong financial performance and attractive valuation are the primary drivers of its overall score. The mixed technical indicators suggest a cautious approach, but the low P/E ratio and high dividend yield provide a compelling value proposition.

Mcchip Resources Business Overview & Revenue Model

Company Description

McChip Resources Inc. operates in the natural resource industry in Canada. The company invests in petroleum interests, as well as direct and indirect interests in minerals. It also holds interest in the Saskatchewan Potash project located in the province of Saskatchewan. The company was formerly known as Madsen Red Lake Gold Mines Limited and changed its name to McChip Resources Inc. in May 1981. The company was incorporated in 1935 and is based in Toronto, Canada.

How the Company Makes Money

Mcchip Resources Inc. generates revenue through the exploration and development of mineral resources. The company identifies and acquires mineral-rich properties, invests in exploration activities to determine the viability and potential profitability of these sites, and develops them into productive mining operations. Revenue is primarily obtained from the sale of extracted minerals, either through direct sales to manufacturers and distributors or through partnerships and joint ventures with other mining companies. Strategic partnerships with larger mining firms can also provide funding and shared expertise, contributing to the company's earnings. Additionally, Mcchip Resources may earn income through the sale or lease of its exploration rights and properties to other entities interested in developing these resources.

Mcchip Resources Financial Statement Overview

Summary

Mcchip Resources demonstrates strong financial performance with impressive revenue growth, high profit margins, and a solid balance sheet. However, cash flow volatility requires attention for sustained growth.

Income Statement

Mcchip Resources demonstrated a robust financial performance with a significant revenue growth rate of 171% from 2023 to 2024, indicating strong business expansion. Gross profit margins are consistently high, peaking at 98% in 2024, showcasing effective cost management. The net profit margin for 2024 is exceptionally high at 225%, driven by substantial net income growth. EBIT and EBITDA margins also reflect positive operational efficiency, with a notable recovery in profit margins compared to previous losses.

Balance Sheet

The company's financial health is solid, with a strong equity base and a low debt-to-equity ratio of 0.17 in 2024, indicating prudent financial management. The equity ratio remains high at 83% for 2024, underscoring financial stability. However, the increasing total debt over the years could pose some risk if not managed carefully.

Cash Flow

Mcchip Resources exhibited a positive turnaround in cash flows, with a considerable increase in operating cash flow to $208,800 in 2024 from a negative value in 2023. The free cash flow has also improved significantly, highlighting enhanced liquidity. Nonetheless, the volatility in cash flows over the years suggests potential underlying operational challenges that need attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71M	1.30M	480.49K	560.20K	695.28K	528.60K
Gross Profit	1.28M	1.28M	452.90K	546.18K	679.79K	527.31K
EBITDA	422.06K	452.27K	-335.45K	-150.47K	-161.29K	-96.19K
Net Income	3.08M	2.94M	563.13K	-374.54K	1.23M	1.79M
Balance Sheet
Total Assets	11.25M	12.83M	10.34M	9.80M	9.65M	8.19M
Cash, Cash Equivalents and Short-Term Investments	10.32M	10.83M	8.84M	8.28M	7.78M	6.42M
Total Debt	10.21K	1.80M	1.82M	1.56M	830.00K	632.01K
Total Liabilities	367.08K	2.15M	2.10M	1.78M	1.02M	831.53K
Stockholders Equity	10.88M	10.68M	8.25M	8.03M	8.63M	7.36M
Cash Flow
Free Cash Flow	1.15M	208.80K	-149.10K	140.96K	121.56K	34.00K
Operating Cash Flow	1.15M	208.80K	-149.10K	140.96K	163.23K	55.26K
Investing Cash Flow	2.70M	291.38K	-208.62K	-169.54K	-86.53K	593.77K
Financing Cash Flow	-2.26M	-537.14K	-85.53K	420.20K	-5.91K	-614.34K

Mcchip Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MCS, the sentiment is Neutral. The current price of 1.4 is below the 20-day moving average (MA) of 1.58, above the 50-day MA of 1.32, and above the 200-day MA of 0.88, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 35.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MCS.

Mcchip Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCS	76 Outperform	C$7.99M	2.59	32.49%	3.32%	―	693.68%
Sector *	44 Neutral	C$925.84M	-8.85	-0.23%	2.68%	24.44%	-41.96%
APX	―	C$3.88M	―	-20.25%	―	―	―
CBV	51 Neutral	C$2.37M	18.24	-7.42%	―	-17.24%	-244.44%
CBI	34 Underperform	C$3.19M	―	-30.01%	―	―	12.99%
PRS.H	―	C$2.60M	―		―	―	―
CRI	32 Underperform	C$18.66M	―	-312.88%	―	―	58.99%

Mcchip Resources Corporate Events

McChip Resources Declares $0.05 Dividend

McChip Resources Inc. has declared a cash dividend of $0.05 per common share, to be paid on December 19, 2024, for shareholders on record as of December 12, 2024. This move reflects the company’s ongoing assessment of its financial health and future prospects. The decision on future dividends will depend on various factors as evaluated by the board of directors.